A study on the mode choice of large-scale households’ farmland transfer-in in rural China: Based on the economic analysis paradigm of transaction costs

Abstract

Regarding the mode choice of farmland transfer, the existing literature have more examined the choices between market-based transfer (spontaneous transfer) and government or village committee-led transfer, and between formal contract and informal contract. However, the question that how the two parties choose among various specific transfer modes has not attracted extensive attention of scholars. Based on contract theory and transaction cost economics, this paper uses the public samples of the third national agricultural census data to investigate how large-scale households choose among the specific transfer modes when transferring into farmland, like the transfer of the contracted management right (TCMR), lease and shareholding. The findings of this paper are as follows. Firstly, with the increase in the transfer-in area and the education level of the household head, the probability of choosing lease and shareholding increases relatively, but the latter rises faster. Secondly, compared with large-scale farmers whose aim is to plant crop, the probability of those who transfer into farmland for gardening and forestry operation choosing shareholding has increased significantly. Thirdly, the age of the household head and the number of household laborers have an interactive effect on the mode choice of transferring into farmland. In addition, the mode choice of large-scale households’ transferring into farmland is also significantly affected by environmental factors such as local topography, irrigation, traffic conditions, industrial structure, and social security development. Therefore, adhering to the parties to choose the mode of farmland transfer independently is crucial. The government and rural grassroots organizations should help the parties to understand the characteristics, adaptability and supply and demand of different modes, and help the parties to explore the most economical mode. The contribution of this paper is that it expands the study of the transfer of rural land rights to the choices of specific transfer modes, and partially reveals the rule of choices, which provides a reference for the parties to choose the most efficient transfer mode under different conditions and for the government and rural grassroots organizations to play a role.